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CANONSBURG, Pa. – Following up on the release of a news story by Reuters stringer Jon Hurdle this week indicating the city of Philadelphia’s intention to “refuse to buy natural gas obtained by the controversial method of hydraulic fracturing,” Marcellus Shale Coalition (MSC) president Kathryn Klaber issued the following statement and collection of supporting facts that, taken together, provide a degree of context not found in the original Reuters piece:

“This decision by the Philadelphia Gas Commission is not based in fact or reality and clearly demonstrates a lack of understanding of how natural gas is transmitted and delivered to consumers,” said Klaber. “If what was passed yesterday is put into effect, PGC would essentially deny the residents and businesses in the City of Philadelphia access to the very energy source used to heat homes and offices, cook meals and deployed for other daily uses.  Gas and oil harvested from hydraulically-fractured wells is proven, safe and has been deployed for decades on more than 1.1 million occasions without harm to drinking water supplies. PGC’s position that it will prohibit the procurement of gas from hydraulically fractured wells disqualifies the vast majority of natural gas produced onshore in the United States. This is more than unfortunate for the residents of the City.”

Additional background/context:

• State law directs PGW to purchase natural gas based on price. “Craig White, the city-owned utility’s executive vice president, said state and local regulations oblige PGW to buy the lowest-cost fuel on behalf of its customers, regardless of its origins. “PGW is required by both state law and city ordinance to pursue a least-cost procurement policy in order to benefit our ratepayers with a stable supply of natural gas at the lowest possible cost,” he said in written statement.” (Philadelphia Inquirer, 9.28.10)
• PGW is already under long-term contract to purchase natural gas from Gulf Coast.“White said that PGW buys all its natural gas under contract from Gulf Coast producers. It has signed long-term contracts with interstate pipelines to carry the fuel to Philadelphia.” (Philadelphia Inquirer, 9.28.10)
• Significant portion of PGW’s Gulf Coast natural gas comes from other U.S. shale formations, and is thus obtained through common hydraulic fracturing technologies.PGW procures a large quantity of its gas from the Transcontinental Pipeline, which connects up with many other pipelines as it makes its way from the Gulf Coast to the Northeast. According tothis transmission map posted on Transcontinental’s site (page 13), the pipeline gathers natural gas from a variety of sources – including the Haynesville, Eagle Ford and even the Marcellus Shale, all of which require fracture stimulation to remain viable.

By Kathryn Z. Klaber
Ithaca Journal // Press & Sun Bulletin // Elmira Star-Gazette
January 17, 2011

• “The irony is that New York consumes more natural gas than any state east of the Mississippi, with more than 30 percent of the state’s electricity derived from it (10 percentage points above the national average) and more natural gas used in the transportation sector than every state but California. There’s a reason that New Yorkers boast the lowest per-capita carbon dioxide emissions of anyone in the country — and it’s not just because of the subway. It’s because of natural gas.”

On a dreary afternoon last summer in Schenectady, the man who would later become commissioner of New York’s Department of Environmental Conservation (DEC) rose to the podium at a luncheon event marking the 40th anniversary of the agency to urge a cautious approach in deciding whether to develop the state’s enormous reserves of natural gas from the Marcellus Shale. “I see no reason,” Open Space Institute president Joe Martens said, “to rush to judgment on a decision as monumental as hydrofracking.”

His alternative? Continue to keep the DEC regulatory and review process on hold until the EPA completes its latest study on fracking, set for release in 2012. Martens asks: “What’s the downside of waiting for the results?”

He was recently sworn in as the new head of the DEC, a position that will help determine the future of Marcellus development.

On its face, the notion of waiting around a few extra years to tap resources that have been in place for 390 million years isn’t entirely unreasonable.Continuing to delay the issuance of strict new regulations governing responsible Marcellus development, however, may result in far fewer jobs and much less revenue for New York.

In Pennsylvania, Marcellus exploration created more than 88,000 new jobs over the past two years, with researchers from Penn State predicting that number will climb past 110,000 new jobs over the next 12 months. Some of these jobs go to the folks who drill the wells, naturally — but the vast majority are along the supply chain. Certainly there will be thousands of jobs created if New York decides to develop the Marcellus. Less certain is how many of those jobs will follow if Albany continues to delay.

We’re talking about the people who forge steel, manufacture pipe, produce sand, do environmental work, research deeds and operate hotels. Faced with the prospect of indefinite delay in New York, these folks have decided to move ahead in Pennsylvania instead — building facilities and opening offices less than a half-hour’s drive from New York’s border. Those jobs will remain in Pennsylvania, and the longer the delay, the better the chances they’ll be held by Pennsylvanians.

The other key point to consider is infrastructure. According to Pennsylvania production figures, 19 of the top 20 producing natural gas wells in the entire state reside along a three-county stretch bordering New York. As more wells are developed there, available space in the existing pipeline network will gradually shrink.

The irony is that New York consumes more natural gas than any state east of the Mississippi, with more than 30 percent of the state’s electricity derived from it (10 percentage points above the national average) and more natural gas used in the transportation sector than every state but California. There’s a reason that New Yorkers boast the lowest per-capita carbon dioxide emissions of anyone in the country — and it’s not just because of the subway. It’s because of natural gas.

The short-term economic case for harvesting clean energy resources from the Marcellus is no less compelling — especially with 900,000 New Yorkers out of work, and the state dealing with a $9 billion gap in its budget. New taxes, pay freezes for state workers, consolidation of public schools — these are some of the tools that Gov. Andrew Cuomo has indicated he’ll use to get the state back on a path toward fiscal sustainability. Why not one more?

Has there ever been a more important time to take advantage of these opportunities? Has there ever been a more obvious one?

Klaber is president and executive director of the Marcellus Shale Coalition.

The Mountain State’s acting governor, Earl Ray Tomblin, a Democrat, said this about responsible Marcellus Shale development in his state of the state address yesterday in Charleston:

As the responsible development of the Marcellus Shale’s abundant, clean-burning natural gas reserves expands across the region, more stable and affordable supplies of homegrown energy are being delivered to consumers and small businesses who continue face tremendously difficult economic hardships. At the same time, this environmentally-proven production is helping to create tens of thousands of good-paying jobs for the local workforce, and positively impacting rural communities and small towns. At least largely in Pennsylvania, and West Virginia too.

You see, despite the fact the world’s first natural gas well was drilled in New York State some 185 years ago, the Marcellus Shale’s economic, environmental and energy security benefits are being fully realized in Pennsylvania, but not in the Empire State. Why? Well, leaders in Albany continue to maintain a policy of ‘hurry up and wait,’ keeping a de facto shale gas production moratorium in place as the state struggles with high unemployment and a spiraling budget crisis.

So what are other leaders, from neighboring Marcellus Shale gas-producing states, saying about this historic energy and economic development opportunity?

West Virginia state senator Mike Green, D-Raleigh, chairman of the Senate Energy, Industry and Mining Committee, “believes gas drilling OK if it’s safe for environment,” the Beckley Register-Herald reports. And we agree.

“We as a state, and as elected leaders, obviously are welcoming the Marcellus shale exploration,” [Sen.] Green said Friday, emphasizing the abundance of the natural gas poses a major plus for the state’s continued economic growth and expansion of the tax base. “We welcome that industry with open arms,” he said.

The Mountain State’s acting governor, Earl Ray Tomblin, a Democrat, said this about responsible Marcellus Shale development in his state of the state address yesterday in Charleston:

The development of the Marcellus Shale formation for natural gas production is an economic development opportunity for the State, and we need to embrace it! Billions of dollars of private capital have already been invested in this activity and with it has come many jobs.

The development of the Marcellus Shale has the potential to restart the manufacturing industry in West Virginia. It is an opportunity that we simply cannot let go by.

How about water use in the shale gas production process, is it being effectively managed to ensure that the environment is protected? It absolutely is, according to Pennsylvania’s top environmental watchdog, Department of Environmental Protection secretary John Hanger. Secretary Hanger writes this in a recent Landsdale Reporter column:

Here’s the reality: every drop of tap water that was publicly treated is required to meet the safe drinking water standard.

And here’s what they’re saying about economic development and job creation tied directly to the responsible development of the Marcellus Shale’s clean-burning natural gas reserves, which continues to be largely left off the table in New York:

• “Opportunity knocks for economic development”: Drilling in the Marcellus Shale could rescue the ailing Southern Tier economy. But is it safe? Recovering this vast, lucrative resource relies on hydrofracking, which, while banned in New York, is legal in 12 states. We should lift the ban and drill. In 2010, Marcellus drilling generated 98,000 jobs and pumped $14 billion into the Pennsylvania economy. Over the next decade, Marcellus development will create 212,000 new jobs and generate $1.8 billion in tax revenues for Pennsylvania. Imagine your property taxes slashed, local businesses thriving and new ones opening. Imagine cash-strapped farmers holding onto the family farm, thanks to drilling income. This is only a dream in New York because big-city politicians want to keep upstate powerless and poor. … Ohio Gov. John Kasich is encouraging Marcellus Shale drilling; he says “there’s real potential to help a lot of people who have been in deep economic trouble for a long time.” Meanwhile, New York is on life support. Marcellus drilling could transfuse economic life into our area. (Elmira Star-Gazette Op-Ed, 1/12/11)

• “Natural gas drilling company looking to hire 90 with goal of all local labor”: Brothers Steven and Alan Peetz of Drums did well for a few years, driving trucks for a contractor involved in residential construction. The number of days they work, however, declined as fast as housing starts. On Tuesday, the brothers visited Scranton to see if they could get into the Marcellus Shale industry with Pumpco Services, a firm that performs hydraulic fracturing of natural gas wells. More than 300 people filled out applications with the company. Pumpco local operations manager, Andy Winkler, said he was gratified by the turnout at the Radisson at Lackawanna Station hotel. … People need to enjoy working outside and should be mechanically inclined. The job includes training on fracking technology, and the company is willing to train employees to get their commercial driver’s licenses. The company is also looking for diesel mechanics and a few electricians. (Scranton Times-Tribune, 1/12/11)

• “Natural gas boom keeps Sunbury painter busy”: Jamie Brumbach credits the booming natural gas industry with keeping him out of the poor house. “Without it, I’d be poor and unemployed,” said Brumbach, an industrial painter who signed a contract about six months ago to paint trailers used to haul frack water. … Brumbach is among thousands of Pennsylvania residents employed as a result of dozens of companies drilling in Marcellus Shale in the state’s Northern Tier. “It’s huge, and I’m all for it,” he said of the business. (Daily Item, 1/13/11)

• “Gas Drilling Company Hiring PA Workers”: One of the companies involved in natural gas drilling in our area wants to hire more local workers. Pumpco is holding a job fair until 3 p.m. Tuesday at the Radisson Hotel in Scranton. The company has about 30 openings. … The job involves working 14 hour days, 12 days on, 12 days off. Pumpco will pay 80 percent of the cost of your health care insurance, which includes medical and dental. Management said some of its workers can make $160,000 a year. (WNEP-TV, 1/11/11)

• “Atlas Energy launches $3 million expansion of Fayette facility”: One local natural gas exploration company has broadened 10-fold in the past several years and is continuing its growth with a $3 million expansion. Atlas Energy this month began construction on a 30,000 -square-foot addition to its office in the Fayette Business Park in Smithfield. The addition will include approximately 100 new office spaces, in addition to several large group-meeting rooms. The additional office space will accommodate many of the new employees that Atlas has hired over the past several years. In 2010, Atlas hired almost 70 new employees in Fayette County alone, “which is a big reason why we needed to expand our office,” Jeff Kupfer, Atlas senior vice president, said. … Company-wide, Atlas Energy has hired more than 210 new employees in 2010. (Herald-Standard, 1/9/11)

• “Regional job outlook starting to improve”: To the west, Broome monitors the Elmira area, which is seeing growth because of the booming Marcellus Shale natural gas play in Pennsylvania. When Texas-based Schlumberger Technology Corp. completes construction of its new facility in Horseheads later this year, the company predicts 300 to 400 new jobs will have been created during the transition from a temporary operating facility to a permanent one. The net effect on the regional job count falls right in line with the New York State Labor Department projections – a 38 percent increase in the number of people working for companies that provide support services for the natural gas industry. (Press & Sun-Bulletin, 1/8/11)

With 900,000 New Yorkers out of work, and the state dealing with a $9 billion gap in its budget, the question remains: What are leaders in Albany waiting for? New taxes, pay freezes for state workers, consolidation of public schools – these are some of the tools that New York Gov. Andrew Cuomo has indicated he’ll use to get the state back on a path toward fiscal sustainability.

How about one more? According to one study, Marcellus development could help create 16,000 new jobs and $15.3 billion in economic activity – and that’s just in Broome County alone.

Associated Press hit piece targeting Marcellus producers in PA takes months to assemble – and only hours for DEP, MSC, others to expose as “misleading”

AP Lets Sensational Story on PA Wastewater Fly on a Monday …

… One Day Later, Readers Learn the Actual Truth

Pa. allows dumping of tainted waters from gas boom  David Caruso Associated Press  Jan. 3, 2011  “Pennsylvania has been the only state allowing waterways to serve as the primary disposal place for the huge amounts of wastewater produced by a drilling technique called hydraulic fracturing.”  “This is an outrage,” said Tracy Carluccio, deputy director of the Delaware Riverkeeper Network, an environmental group. “This is indicative of the lack of adequate oversight.”  “A number of gas drillers have begun recycling wastewater in other parts of the country to cut down on the costs of disposal and of obtaining the fluids needed for new fracturing jobs.” (Associated Press, 1/3/11)                                                                                                                                                                 … 2,500 words later  “In some respects, it’s better than what’s already in the river,” he said of the water his plant discharges into the Conemaugh. “What we are putting into the river now is far cleaner, and far more eco-friendly than what was running in naturally from acid mine drainage.” (same story, buried down in 57th paragraph)

DEP chief: AP story on gas drilling wastewater misleading  Tim Stuhldreher  Central Penn. Business Journal  Jan. 4, 2011  “Monday’s Associated Press story on the disposal of wastewater from natural gas drilling misleadingly downplayed important regulatory reforms, Pennsylvania Environmental Protection Secretary John Hanger said.” (1/4/11)        Pa. is monitoring Marcellus shale wastewater  John Hanger – DEP Secretary  Allentown Morning Call (letter to the editor)  Jan. 5, 2011  “It’s appalling that David Caruso’s Associated Press Jan. 4 article would be posted and published based on the sensational premise that Pennsylvania isn’t protecting drinking water sources from drilling wastewater.”  “Here’s the reality: Every drop of tap water that was publicly treated is required to meet the safe drinking water standard.”  “We’ve doubled the number of oversight staff and now have arguably the nation’s most aggressive oversight program. That’s the real story here, but government doing its job doesn’t grab headlines the way a piece like David Caruso’s does. That’s disappointing.” (Hanger LTE, 1/5/11)    “Waste water (fluids) must be reused and recycled, or collected and treated at an authorized waste water treatment facility. DEP approval is required before the receiving treatment facility can accept the wastewater for processing and/or disposal.” (PA DEP Marcellus fact sheet, released 11/08)  Most water from drilling is recycled  MSC president Kathryn Klaber  Washington Observer-Reporter (letter to the editor)  Jan. 7, 2011  “Pennsylvania’s natural gas producers, on average, recycle more than 90 percent of the water that returns to the surface. The rest is delivered to underground injection sites … whose location, construction, maintenance and inspection are regulated under the Safe Drinking Water Act.  “[T]he industry is committed to being a zero-discharge operation in the state’s surface waters and continues to lead the nation in recycling technologies and practices.” (Klaber LTE, 1/7/11)         The rest of the story  MSC president Kathryn Klaber  Centre Daily Times (letter to the editor)  Jan. 7, 2011  “Thanks to advances in technology, producers are able to access more clean-burning natural gas by drilling fewer wells, lessening impacts to the land and reducing the volume of water needed to do the job.” (Klaber LTE, 1/7/11)   ___________________________________________ AP myth: Producers recycling water in “other parts of the country” – but not in PA?!      Fact: PA producers recycle more water from shale development than all other states combined        Recycling of waste water to be norm for Marcellus Shale gas wells     Rick Stouffer  Pittsburgh Tribune-Review  Oct. 20, 2009  “Major companies drilling for natural gas in Western Pennsylvania’s Marcellus Shale rock formation are or soon will be recycling all the waste water recovered from their operations, executives said Monday.”   Drilling plan includes recycling Staff Reports Wilkes-Barre Times Leader Oct. 28, 2010       “It makes sense to reuse this water,” said Ron Schlicher, an engineer consulting for the treatment company. “The goal here is to strive for 100-percent reuse, so we don’t have to discharge.” (10/28/10)  AP Forced to Re-Examine Its Claims on Recycling in Follow-Up   “…all of the state’s biggest drillers say they are now recycling a majority of the wastewater produced by their wells in new fracturing jobs, rather than sending it to treatment plants. Hanger said about 70 percent of the wastewater is now being recycled …” (Associated Press, 1/4/11)  Never let the facts get in the way of the story:  “The AP did not contact DEP for the story, [Hanger] said.” (Central Penn. Business Journal, 1/4/11)

Clean-Burning Marcellus Natural Gas Helping Small Businesses Reach “The American Dream”: Fred Raco is living proof that hard work plays a big role in reaching the American dream. … Raco is negotiating to purchase and refurbish a new facility in Richland Township, giving him three times more space than the city site. “We’re really gearing up for this,” he said of the Marcellus Shale. Raco currently has 23 employees working at his Johnstown laboratory and in the field. He expects his employment to reach 50 within two years. … Raco thinks Marcellus may allow more young people to stay at home. “They are by no means minimum-wage jobs.” Raco rejects the notion that the Marcellus jobs are going to workers from Texas. “There is a real misconception that all the jobs are being filled by people from out of the state,” he said. “We’re doing work with companies that are Pennsylvania-based that are manufacturing metering stations, manifold piping, that type of thing.” (Tribune-Democrat, 12/15/10)

Marcellus Shale Creating Jobs for America’s Veterans: A Penn State economic impact study predicted the industry will be an $8 billion boon to the state, with about half of that money generated in southwestern Pennsylvania. The study, commissioned by the Marcellus Shale Coalition, also projected that 88,000 jobs would be created in Pennsylvania this year. Those jobs are great opportunities for veterans, said Kathryn Klaber, executive director of the Marcellus Shale Coalition. Range employs dozens of veterans, Mr. Pitzarella said. “They’re ideal candidates,” he said. “They’re hard workers, team-oriented, natural leaders and have no issues with long hours.” … When Carl Dokter served another tour of duty overseas, Range held his job for two years and hosted a welcoming ceremony for him when he returned, he said. … Chesapeake Energy Corp. is another driller that employs a large number of veterans and is expanding its local footprint. The company employs about 150 military officers and servicemen, spokesman Rory Sweeney said. (Post-Gazette, 12/16/10)

Small Business Owner: “I am a Marcellus Overnight Success”: Three years ago, Larry Mostoller had two employees and was trying to develop a business park outside Somerset. Today, Mostoller employs 100 people and provides work for more than 30 subcontractors. He has gotten involved in the Marcellus Shale industry. “I am a Marcellus overnight success,” Mostoller said. Mostoller is co-founder and CEO of Somerset Regional Water Resources, a two-year-old company that provides nearly all general labor needs on a gas drilling site. … Mostoller is proof of Marcellus Shale’s role in changing the economic landscape. … One thing is certain: Marcellus is having an impact. … “It’s absolutely phenomenal. All of us are going to live better.” He is convinced that Marcellus Shale gas will continue to help meet the nation’s energy needs for years to come, and its development will take decades. “The person that drills the last Marcellus well has not been born yet,” Mostoller said. (Tribune-Democrat, 12/15/10)

Mayor: ‘Marcellus Multiplier’ Jobs Good “For The Entire Region” : For one Mon Valley municipality, drilling for natural gas into the Marcellus Shale will create dozens of new jobs. Export-based Dura-Bond Industries will open a 55,000-square-foot pipe-coating facility along the Monongahela River in Duquesne. It will serve to complement the company’s existing coating facility in nearby McKeesport. … Once opened, the facility will create between 75 and 85 new jobs in the Mon Valley, a fact that is not lost on Duquesne Mayor Phil Krivacek. “Well, anytime you can bring in a company that will create new jobs in the region is a definite plus,” said the mayor. “I think this a good thing for not only Duquesne, but for the entire region.” … “We are good stewards of the environment and will continue to be. It is imperative that the needs for job and energy production can meet with the needs of the environment.” (Post-Gazette, 12/16/10)

Small Business Owner on Marcellus Supply Chain Related Work: “We Were So Lucky”: Chesapeake has spent more than $94 million this year to pave or repair 300 miles of roads in Bradford and three other counties. That has benefited Leo Drabinski, who co-owns Calvin C. Cole Inc., a hard-rock quarry and construction company in Bradford County. He said demand for rock used for roads and well sites used by gas companies grew 10 times in the past year. He increased his quarry staff to 15 from six, and even started a van service to shuttle rig workers to their jobs. “We were so lucky,” Mr. Drabinski said. “We’re right in the heart of this natural-gas boom.” Business is also booming for truck dealerships, restaurants and motels. Some farmers have sold lease rights for $5,000 an acre, using the money to pay off debt, invest in new farm equipment or retire. … Chesapeake, whose Towanda offices are in a renovated department store, says it is working with local colleges so it can train an all-local work force. In the past year, the company increased its staff in the state to 1,100 from 250 and said more than 400 employees are state residents. (Wall Street Journal, 12/14/10)

Responsible Marcellus Development “The Region’s Gold Rush”: The Marcellus Shale is said to be the biggest natural gas field in the United States — spanning nearly 61 million underground acres under Ohio, West Virginia, Pennsylvania and New York. Southwestern Pennsylvania is called the “fairway” of the shale by industry experts, and its economic impact reaches beyond the energy in demand. Local politicians have described it as the region’s gold rush and the second coming of the coal and steel industries. (Post-Gazette, 12/16/10)

Economic Leaders: “Marcellus-Related Opportunities Have Meant Jobs in Various Areas”: Economic leaders…have been watching the Marcellus action to the west of the region and in the state’s northeastern counties. “JARI has identified the Marcellus Shale opportunity as one of the top opportunities for our region in the coming years,” Thomson said. … “The Marcellus industry needs just about anything and everything. It’s just amazing the amount of things that are needed.” … “The spinoff is where we’re going to see the economic impact,” Silka said. … Bradford County Commissioner John Sullivan said Marcellus-related opportunities have meant jobs in various areas. “They’re building three motels in the county,” said Sullivan. Sullivan has a friend who sells tires, and the Marcellus drilling has had a significant impact on his business. Another friend has a quick-lube shop and is overrun with business… Williamsport has seen 75 new businesses open during the past 18 months – since the surge in Marcellus drilling began there. … Kathryn Klaber, president of the Marcellus Shale Coalition said much of the economic benefit will be outside the direct industry. “The jobs story is starting to have a much broader reach,” Klaber said. … State Sen. John Wozniak, D-Westmont, said the Johnstown region is on the cusp of an improved economy. “It’s just beginning and there is a tremendous opportunity out there.” (Tribune-Democrat, 12/15/10)

Wall Street Journal Underscores Marcellus Shale’s Positive Economic Impact: A recent Penn State study estimates that Marcellus is the second largest natural gas field in the world. The study notes that Pennsylvania had $4.5 billion in Marcellus-related investment in 2009, generating nearly $400 million in state and local tax revenue and 44,000 jobs. … The drilling industry could compensate with new jobs in construction, trucking, engineering and a variety of attendant services. The industry also pays royalties and leases land from landowners, who pay taxes and buy goods. … The EPA and the Ground Water Protection Council, a nonprofit made up of state regulatory agencies, have published studies concluding that fracking is safe. While energy exploration is never risk-free, the Ground Water Council hasn’t found a single documented case of fracking having polluted local ground water. (Editorial, 12/16/10)

New Fed. Govt. Analysis Projects Rapid Growth in Clean-Burning Natural Gas

“DOE sees rapid growth in natural gas”: The Energy Department foresees a rapid growth in natural gas production over the next 25 years, according to a report from its statistical arm Thursday. … Natural gas will represent 62 percent of new capacity by 2035, EIA said. The greatest chunk of that should come from shale gas, which has already increased production 14-fold over the last decade. (Politico, 12/16/10)

“Shale-Gas Output May Double by 2035, Reducing Energy Imports, U.S. Says”: Production forecasts for natural gas locked in shale have doubled, which will help the U.S. become less reliant on imported energy, according to a federal agency. The Energy Information Administration’s annual long-term forecast shows gas from shale will play a bigger role in meeting U.S. demand, Richard Newell, agency administrator, said today in Washington. Production in 2035 is “twice the level that we had in last year’s outlook,” he said. … This year’s outlook more than doubles the estimate of U.S. technically recoverable reserves of natural gas from shale, a type of sedimentary rock, to 827 trillion cubic feet from 347 trillion cubic feet. New technologies that let natural-gas producers drill horizontally and fracture the rock formations with injections of water, sand and chemicals account for the increase, Newell said. (Bloomberg, 12/16/10)

“US doubles estimates for gas reserves”: In the first release from its Annual Energy Outlook for 2011, the EIA more than doubled its central estimate of the country’s technically recoverable reserves of shale gas, from 353,000bn cubic feet to 827,000bn cubic feet. The estimate would be enough to cover the entire gas consumption of the US for 36 years. The rapid development of shale gas production has already had profound effects on the US energy system, driving down prices and inspiring companies to invest in plants to produce supercooled liquefied natural gas that can be exported in tankers to Europe or Asia. (Financial Times, 12/16/10)

MSC President Underscores Industry’s Commitment to ‘Getting it Right’: “Game-changer” and “revolution” are two words being thrown around to describe the Marcellus shale, a natural gas industry spokeswoman said. And, the potential impact that shale drilling can have — on the economy, on communities, on the environment — just underscores the importance for the industry to get it right, especially with the entire world watching. That was the message of Kathryn Klaber, president of the Marcellus Shale Coalition. … Klaber added that there are no second chances for getting it right. “The way I see it, we’ve got on opportunity to get this historic opportunity right,” Klaber said, “and I can really, very confidently speak for the industry as to how the folks that are in this industry every day are committed to doing that.” (Blairsville Dispatch, 12/10/10)

Gov. Tom Ridge: The Natural Gas Industry is Committed to Getting ‘It Right’: Former Gov. Tom Ridge talked about how he is working to guide development of the Marcellus shale play in Pennsylvania. … He focused his comments on the Marcellus shale play and the principles the Coalition has adopted. “We work hard every single day to make sure we’re doing this in a way I would insist on had I been governor,” Ridge said. “We only get one chance to do it right. At the end of the day, we have an extraordinary opportunity to build more miles of rail lines, have more Pennsylvanians employed and invest in Pennsylvania.” (Wellsboro Gazette, 12/8/10)

Marcellus Pioneer Range Resources Projects 1,000 Pa. Jobs: “Range Resources Corp. could employ 1,000 workers in Western Pennsylvania five to eight years from now, an executive said Wednesday as the natural gas producer marked the start of construction on its new Appalachian offices. The Fort Worth-based company has 300 employees now in the region and 400 across Pennsylvania. All but about 20 are from Pennsylvania, West Virginia and Ohio, Ray N. Walker Jr., senior vice president of Marcellus operations, said at the building site in the Southpointe II complex in Cecil in Washington County. … “Brick and mortar is one of the most visible signs of the hiring and the permanent commitment that (gas production) companies are making in Pennsylvania,” said Kathryn Klaber, president of the Marcellus Shale Coalition. (Tribune-Review, 12/9/10)

PA Workforce Development Official: ‘[Natural] Gas Related Industry is Our Big Gold Rush for Pennsylvania’: “[Richard Stetz, CareerLink regional manager] said mainly because of the natural gas drilling industry, the area has “lots to look forward to. More so than other parts of the country.” “Gas related industry is our big gold rush for Pennsylvania and don’t forget oil, which they say is under the shale,” he said, adding, “usually this is a slow period for us, but we are as busy as ever. Now all you see are triaxle trucks so things are booming.” (Williamsport Sun-Gazette, 12/11/13)

Gov. Ridge: ‘U.S. Security in Natural Gas’: “What we have is natural gas,” Ridge said. “It’s here, it’s secure.” Now retired from public life, at least temporarily, Ridge has his own company and is a strategic adviser to the Marcellus Shale Coalition, which oversees natural gas exploration and production in the deep reserves beneath the Pennsylvania soil and neighboring areas of the Northeast. Shale gas has pushed the United States into uncharted territories for finding and using the domestic fuel and helping wean the nation off imported oil, he said. “I think it’s time we put America at the head of the global energy parade,” Ridge said. “That’s our mission; that’s not a mirage.” … Natural gas also has a clean energy component for powering electrical generation plants: it has half the carbon emissions of coal and basically zero particle emissions, Ridge said. (The Oklahoman, 12/10/10)

MD State Senator Says Marcellus Production Key to ‘Making us Energy-Independent’: “Western Maryland’s role as the state’s energy frontier doesn’t bother state Sen. George C. Edwards, a Republican who represents Garrett and Allegany counties. He says the income and jobs from each energy project are badly needed in communities where unemployment is higher than average. “We’re the only place in the state that has energy, except for wind,” Edwards said. “This country should be energy-independent. We ought to be part of making us energy-independent.” (Balitmore Sun, 12/13/10)

Marcellus Providing an Opportunity for Region to be ‘a Leader in Energy Development’: “Ms. Klaber [of the Marcellus Shale Coalition] showed a map of Marcellus wells by Pennsylvania county and discussed the current and future economic impact of shale development. “There’s a lot of opportunity for this part of the country to be a leader in energy development,” she said. (Post-Gazette, 12/9/10)

Economic Development Group Says Marcellus is Sending Rail Industry Booming: “Four new sand silos have gone up on Growth Resources of Wellsboro property in Delmar Township, reported organization Secretary Mary Worthington, and four more will be going up in 2011, all due to the natural gas industry, she said. “Wellsboro and Corning Railroad is busy,” she added. (Williamsport Sun-Gazette, 12/11/13)

Responsible U.S. Shale Gas Production Soars, Driving Down Energy Prices for Struggling Consumers

‘Happy Holidays,’ PA Consumers: Marcellus Production, Natural Gas Helping to Keep Home-Heating Costs Down: “Even though natural gas drilling is up, the prices for residential customers are down, according to UGI Utilities Inc. representative Andrew Rohrer. “On the natural gas utilities side, those meters are humming with this cold weather, but the good news is it won’t cost as much. Gas prices have come down by about 10 percent for the average residential customer, which is great news heading into the heating season. So happy holidays,” he added. (Williamsport Sun-Gazette, 12/11/13)

U.S. Dept. of Energy: ‘Natural Gas Production May Rise to Record in 2010’: “U.S. natural gas production this year may reach an all-time high as drilling for the heating and power-plant fuel increased. Gas output will average a record 62.09 billion cubic feet a day this year, Energy Department production data show. (Bloomberg, 12/7/10)

‘North America: The New Energy Kingdom’: “With rising production from shale fields, the U.S. surpassed Russia last year to become the world’s largest supplier of natural gas. Shale now accounts for 10 per cent of the country’s natural gas production – up from 2 per cent in 1990. … For natural gas, the U.S. has the four largest fields in the world: the Haynesville field in Louisiana (with production up by 77 per cent in 2009); the Fayetteville field in Arkansas and the Marcellus field in Pennsylvania (both with production up by 50 per cent); and the Barnett field in Texas and Oklahoma (with production up by double-digit increases). The EIA reports that proven U.S. reserves of natural gas increased last year by 11 per cent to 284 trillion cubic feet – the highest level since 1971. (Globe and Mail, 12/9/10)

On Hydraulic Fracturing’s Record of Environmental Safety

MSC President Reinforces PADEP Facts Regarding Fracturing’s Clear Environmental Safety Record: “What gets a lot of attention is the hydraulic fracturing process. Well, the regulators and others who study this very carefully (say) that is not the biggest risk. It’s very difficult, and in fact, has never been shown that from 8,000-feet down a process is contaminating drinking water,” Klaber said. “We’re focused on where the real challenges are, which is making sure you don’t have any spills, and there’s no surface interactions with the compounds we use.” (Blairsville Dispatch, 12/10/10)

University of Houston Prof. and Petroleum Engineer PhD: ‘The Industry has an Impeccable Safety Record’: “Hydraulic fracturing is an absolutely necessary process for removing natural gas from the ground and cultivating this very attractive and environmentally friendly form of energy,” said Dr. Economides. … As recently as November 2010, the Pennsylvania Department of Environmental Protection released a report showing that there have been no documented incidents of groundwater contamination as a result of hydraulic fracturing. (Release, 12/9/10)

Some PA Residents to See Nearly 11 Percent Drop in Gas Bill Immediately; Even More Domestic Supplies on the Way

• Philadelphians to save more than $22.6 million over next three months alone
• UGI customers to experience between 8.1 and 10.7 percent reduction in monthly bill
• Rates more than 13 percent lower than a year ago

PGW announces cuts in gas rates
Philadelphia Inquirer
Andrew Maykuth
November 29, 2010

Just in time for the winter heating season, Philadelphia Gas Works announced Monday it will decrease natural gas rates for the next three months, saving the average residential heating customer about $14.69 per month.

The municipal gas utility will lower its residential gas-supply charge from $1.60 per hundred cubic feet to $1.50 on Wednesday. The charge for commercial and institutional customers will also be reduced.

The supply charge is adjusted quarterly to reflect changes in the wholesale market price of natural gas, which is depressed because of the recession and abundant supplies from new resources such as shale-gas.

Based upon current market projections, the company anticipates that its rates should remain stable through the spring.

UGI cuts natural gas rate by 8.1 percent
Reading Eagle
Dan Kelly
November 30, 2010

Citing falling market prices and a growing supply, UGI Gas Utilities said Tuesday that it will decrease the rate it charges for natural gas by 8.1 percent beginning today.

UGI provides natural gas to 82,000 customers in the greater Reading area.

In addition, the utility owns UGI Central Penn Gas, which has several hundred customers in Hamburg and Shoemakersville, and in Centre, Perry, Tilden and Windsor townships. The rate for those customers will drop by 10.7 percent beginning today.

The average monthly bill for a UGI customer will drop to $103.60 from $112.76, officials said.

Central Penn monthly bills will drop to $83.01 from $92.92, they said.

Since 2008, UGI customers’ rates have fallen 30 percent and Central Penn customers’ bills have dropped 35 percent, company spokesman Joseph Swope said.

“We’re only starting to see the impact of the Marcellus shale gas supply,” Swope said. …”For the first time in a long time we have this huge supply of gas sitting here locally and better yet, it’s hurricane proof.”

By 2018, Swope said, the Marcellus shale will be producing 4.6 billion cubic feet per day, or 40 percent of all natural gas currently used in the Northeast.

U.S. proved natural gas, crude oil reserves soar – EIA
Reuters
Selam Gebrekidan and Joshua Schneyer
Nov 30, 2010

U.S. natural gas reserves increased by the most in history last year, and crude reserves also rose, as companies drilled frantically into shale rock formations with new technology, the Energy Information Administration said in an annual report on Tuesday.

U.S. net proved natural gas reserves rose 11 percent, or 28.8 trillion cubic feet (tcf), in 2009 to total 284 tcf, underscoring the dramatic impact that new gas pumped from shale rock formations is having on world energy supply.

“These increases demonstrate the possibility of an expanding role for domestic natural gas and crude oil in meeting both current and projected U.S. energy demands,” EIA researchers said in their report.

Proved reserves — which now stand at the equivalent of 12 years of gas consumption and 3.3 years of oil demand — represent energy supplies that are extensively charted out and could be tapped under current market conditions. Total recoverable reserves, however, can be far higher.

WPSU Radio. Former Governor Tom Ridge has joined The Marcellus Shale Coalition as a “strategic adviser.” WPSU’s Patty Satalia talks with the ex-governor about what the role entails, what he’ll do to ensure that Marcellus Shale is “developed responsibly,” and about his views on a severance tax for the industry.

Philadelphia Inquirer
Sat, Nov. 20, 2010
 
The editorial “Buying good publicity” (Saturday) states that, “The greatest safety concerns from Marcellus Shale drilling stem from the impact on drinking water by the use of a water-and-chemical mix to break through to gas formations thousands of feet underground.” However, your readers should understand that fracturing fluids are 99.5 percent water and sand, with a fraction of additives used to reduce friction in the well bore and to kill bacteria (all components are listed on the state Department of Environmental Protection’s website). These fluids have never impacted groundwater, a fact that has been confirmed by DEP Secretary John Hanger.
 
The shale-gas industry – which, according to experts at Penn State, will have helped create 88,000 jobs in the commonwealth by year’s end – is committed to responsibly ensuring that we maximize the economic, energy security, and environmental benefits of the Marcellus Shale for all Pennsylvanians. We are devoted to getting this opportunity right. Our industry is taking commonsense steps to ensure that groundwater is protected and that responsible Marcellus development will continue to help put tens of thousands of Pennsylvanians to work. At the same time, our industry’s work is generating much-needed revenues for our cash-strapped state government, as well as for local municipalities, while also directing our nation on a path toward a more secure, cleaner energy future.
 
Kathryn Z. Klaber
President & Executive Director
Marcellus Shale Coalition
Canonsburg

Read this editorial on the Philadelphia Inquirer website: http://www.philly.com/philly/opinion/20101120_Letters__Maximizing_the_benefits_of_natural_gas_for_all_Pa_.html

http://thedailyreview.com/opinion/the-gas-boom-be-smart-about-what-you-see-hear-1.1066190

The gas boom: Be smart about what you see, hear
Towanda Daily Review, Editorial
Published: November 19, 2010

• “If you want a relatively quick overview of the natural gas phenomenon, watch the 60 Minutes program. And by way of contrast, see “Gasland” and learn for yourself the difference between a responsible report and a hatchet job.”

• “The gas industry has brought about an economic boom that likely will continue to be a transformational force in this region. In a word, it’s called progress. As the effects of the phenomenon spread, our lives, for the most part, are improved. The future looks brighter.”

Bradford County and the surrounding region once again are being exposed to the glare of national publicity. The current version deals with the natural gas boom in the Marcellus Shale.

Two recent events are notable: The showing of the controversial documentary “Gasland” at the Keystone Theatre in Towanda earlier this month, and the airing Sunday night of CBS’ “60 minutes” segment of the pros and cons of the current gas boom. Both looked at drilling nationwide and both also zeroed in on the water contamination problems in Dimock, the small community in nearby Susquehanna County.

“Gasland,” aired some time back on HBO, drew quite a crowd at the Keystone, just about filling the downstairs portion of the main theater – about 250 people in all.

As most know by now, the film is critical of the gas drilling industry. Dimock is a microcosm for filmmaker Josh Fox, a Pennsylvania native. The state Department of Environmental Protection declared that Cabot Oil and Gas was responsible for polluting the domestic water supplies for a dozen or more households in Dimock. Cabot, while disputing the DEP, is providing the property owners with fresh water supplies.

The two presentations are notable for vastly different reasons. One show, “Gasland,” was a long, muck-raking polemic, peppered with sensationalism, emotionalism, and distortions. The other was a much shorter, balanced and informative news report that recognized the economic value of the gas boom while responsibly acknowledging there are risks and problems.

“Gasland,” despite its shortcomings, is an artistic achievement. It is a well-paced, absorbing film. Too bad the science, the facts, are presented so manipulatively. Such an effort serves only to rile people based on misleading information and makes gathering support for any needed corrective action more difficult.

And, amazingly, here’s the bottom line, in Josh Fox’ own words during a PBS interview: Referring to Dimock in highly exaggerated terms, such as a “disaster area” with a “total loss of normal life,” he then conceded, “Who knows if they (residents) are right. I don’t. It’s all speculation.”

Speculation, indeed, to the superlative degree in this film.

By contrast, the “60 Minutes” presentation features Aubrey McClendon, the CEO, chairman and cofounder of Chesapeake Energy, the most active driller of new wells in the nation, and the largest leaseholder of gas-drilling rights in Bradford County. McClendon, named by Forbes Magazine as one of America’s top-performing executives, is an articulate, convincing advocate for the natural gas industry.

The program contrasts the opposition to gas drilling embodied by Dimock with the excitement about gas drilling found in communities built above the Haynesville Shale in the Northwest corner of Louisiana. There, newfound “Shaleionaires” celebrate the economic vitality the industry has created in their communities.

If you want a relatively quick overview of the natural gas phenomenon, watch the 60 Minutes program. And by way of contrast, see “Gasland” and learn for yourself the difference between a responsible report and a hatchet job.

And, to underscore that “60 minutes” does not have a monopoly on responsible video presentations about this controversial topic, consider another documentary called “Haynesville,” by filmmaker Gregory Kallenberg.

The “60 Minutes” program can be found here.

Much about the two documentaries can be found by researching the titles in the Web.

As we said on this page recently, the gas industry has brought about an economic boom that likely will continue to be a transformational force in this region.

In a word, it’s called progress. As the effects of the phenomenon spread, our lives, for the most part, are improved. The future looks brighter. Don’t take someone else’s word for it. Evaluate the pros and cons. Figure it out for yourselves.

In the final analysis, embrace the change, take control, ensure proper regulation and the means to pay for it, and see to it that if anyone is harmed, they are made whole. But, most of all, celebrate the new opportunities, promote orderly growth, and reap the rewards.

NOTE: Click HERE to view this editorial online and HERE to view the document “Debunking GasLand.”